FG Plans fresh regulations for Moniepoint, Opay, ither digital lenders to improve loan recovery methods

Date:

December 27, 2023.

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Azonuchechi Chukwu.

The Federal Competition and Consumer Protection Commission, FCCPC, has disclosed that it would release more regulations for operators in the digital lending space in 2024 to improve loan recovery methods in the country in the face of rising default rates.

The Chief Executive Officer of the Commission, Babatunde Irukera, revealed that there are high levels of default from Nigerians, despite the reduced rate of harassment in the sector by the FCCPC.

He said, “One of the big issues that we are seeing is that there is now a significant level of loan default because people are not able to use these unethical and inappropriate loan recovery mechanisms, and I am insistent that you cannot say to me that the only language Nigerians understand is to abuse them. No, I disagree.

“We must necessarily do the work no matter how hard it is to find a more sensible way to recover loans because I also agree that if these digital money lenders are unable to recover their loans and drop out of the market, it is a consumer protection problem because of those who need those types of short-term unsecured lending.

“So, we have to find the balance and so some of the regulations that will come out in 2024 will be a broader approach to responsible borrowing and responsible lending by individuals and corporates. I am hopeful that the future of what we’re building is that even school landlords would be able to report to a centralized credit system about the conduct of tenants, students, and parents so that we can know each person’s level of fiscal responsibility or credit wordiness.”

The FCCPC recently revealed that it has reduced harassment and defamatory messages in the sector by about 80 per cent.

Irukera said, “India, Kenya, Brazil, Ghana, and Uganda are still struggling in digital lending. Some of these countries are taking lessons from what we have done.”(www.naija247news.com).

Azonuchechi Chukwu
Azonuchechi Chukwuhttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

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